2010AWARDS & AnnuAL REVIEW - PERE

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ASIA FUNDRAISE OF THE YEAR 1. Fortress Investment Group, $800 million Fortress Japan Opportunity Fund 2. Gaw Capital Partners, $373 million Gateway China real estate Fund iii 3. Angelo, Gordon & Co, $625 million AG Asia realty Fund ii According to those familiar with Fortress Investment Group, when the firm went to market with its debut Asia real estate fund, there was quite a stir. Having a firm with a track record of completing more than $50 billion in transactions globally seek to ply its trade in Asia – in particular, Japan – proved irresistible for the LP community. So much so, the fundraise was the largest by an international private equity real estate business in the region last year, predominantly supported by commitments from non-US investors. Closed last June, the Fortress Japan Opportunity Fund already has made 12 investments and called more than 85 percent of its capital. With particular expertise in real estate debt resolution, en- ASIA LP OF THE YEAR ASIA 1. China Investment Corporation 2. the limited partners of Bank of America Merrill lynch’s Asian real estate opportunities Fund 3. national Pension service of Korea According to a 2009 annual report published last July, China Investment Corporation (CIC) revealed it had built up a global investment portfolio valued at $81.1 billion, of which 6 percent or $7.43 billion was alternative assets including real estate. There may not be concrete figures yet available for how large the portfolio grew last year, but there is no doubt that real estate has become a significantly larger contributor in 2010. “We’ve done quite a number of significant direct transactions in the market,” real estate head Collin Lau told PERE. Incepted in September 2007, CIC was not in a position to park meaningful capital into the market during the credit crunch, leaving it perfectly positioned to capitalise on “oncein-a-lifetime deals” in its aftermath. After joining Brookfield Asset Management’s $5.5 billion Real Estate Turnaround Consortium in 2009, CIC was able to benefit from the investment club’s $1.7 billion investment into the recapitalization of General Growth Properties last year. As 2010 came to a close, another club deal transpired in the form of an agreement to invest A$2.5 billion (€1.8 billion; $2.5 billion) to purchase a 60-property industrial fund from ING REIM. That deal, yet to be completed, was led by The Goodman Group, yet another company recapitalized by CIC. “People may view these deals as opportunistic, but we see these as very high-quality assets that we want to hold onto for a very long time,” Lau said. 22 PERE | 2010 AwArds & AnnuAl review hanced further through the October appointment of Doug Smith from Deutsche Bank, Fortress has picked up more than $2 billion of Japanese debt, including loans from units of collapsed Wall Street bank Lehman Brothers, at substantial discounts. Fortress also used the fund to take a controlling position in KK daVinci in a deal that initially saw it purchase $230 million of daVinci’s corporate debt. In one fell swoop, Fortress achieved sheer scale in Japan as daVinci held approximately $9.6 billion in assets under management at the time of the deal. Tipped as a bidder for the real estate of Tokyo-listed lender Risa Partners, expect the fund’s equity to fully be committed anytime now and the emergence of a follow-up effort. PLACEMENT AGENT OF THE YEAR 1. Citi Private Bank 2. Macquarie Capital Advisors 3. Park Hill real estate Group To put into context just what kind of year Citi Private Bank had in 2010, it’s best to consider its fundraising totals relative to 2009. Citi Private Bank, through its Global Managed Investments-Real Estate division, raised just $100 million globally for its clients in 2009. And while it is true that markets rebounded slightly, in Asia as elsewhere, Citi managed to place $955 million globally in 2010, or almost 10 times more. Among the successful fundraising stories in Asia for coheads Kwang Meng Quek and Daniel O’Donnell was Harvest Capital Partners’ CR China Retail Real Estate Development Fund, for which the Hong Kong-based firm held a first closing on $325 million last January. The vehicle was set up to “capitalise on the rising consumerism and long-term economic growth in second- and third-tier Chinese cities”, Meng Quek noted. Citi’s placement division in Asia is small – four staff in Singapore and just three in Hong Kong – making its contribution to the firm’s fundraising total that much more impressive. Commenting on 2010’s activity, Meng Quek said Asian and European investors were more active in real estate investments as those in the US “remained in recovery mode from the downturn”. While most global investors sought core investments, he perhaps contrarily found that the investors Citi worked with favored opportunistic outlays. No wonder then that he told PERE that Citi Private Bank will be focused on opportunistic investments in emerging markets, which he determines “are attractive to our client base and have the potential to deliver appealing returns.”
Brazil Canada China France Germany India Italy Luxembourg Mexico Panama Poland Russia Spain Turkey United Arab Emirates United Kingdom United States GREEN OFFICE is getting big-name support around the world. Bank of America Coca-Cola PricewaterhouseCoopers San Diego Padres Verizon ExxonMobil Shell JPMorgan Chase Wells Fargo Harris Bank Shook, Hardy & Bacon LLP KPMG U.S. Bank Deloitte Food and Drug Administration First American Title American Bar Association Merrill Lynch Ernst & Young Van Kampen Funds Discovery Communications Union Bank Safeway Fleishman-Hillard Inc. Northwestern University Sodexo FedEx Fulbright & Jaworski King & Spalding LLP Clark Construction Group LP CB Richard Ellis Deutsche Bank GE Capital Chevron Accenture EPA GE Healthcare UBS Marsh Bingham WorldBusiness Capital Inc. Canadian Imperial Bank of Commerce Simpson Thatcher Bartlett Red Hat Kirkland & Ellis LLP The Simons Group Foley & Lardner LLP Chapman & Cutler RMB Capital Management Bovis Lend Lease Proskauer Rose LLP Ungaretti & Harris C.H. Robinson Counsel On Call Carlton Fields Morris, Manning & Martin Peck, Shaffer & Williams LLP More and more of our tenants—over 700 companies to date—have adopted Hines GREEN OFFICE, an innovative program led by Hines offi ces around the world to encourage easy-to-implement green practices at work. This voluntary initiative continues what Hines has done for more than half a century—setting the standard for quality and sustainability in real estate, and creating better places for people. Setting the standard in real estate investment, development and management the world over. Hines.com
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Page 3 and 4: Senior Editor, Real Estate Erik Kol
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Page 43 and 44: For further information please cont
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Page 47 and 48: 3Throwing down the gauntlet the tow
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